RFID the key to optimality

RFID the key to optimality, According to Visich, Li andKhumawala (2007), “When customers return their purchases to retailers for refund, repair or a recall, an upstream movement of goods occurs from the retailer to manufacturer. This upstream movement of product returns is termed as reverse supply chain”. Reuse of products and materials become essential from two aspects. On the one hand, economical issues of reusing encourage manufacturers to find ways to ensure the return of their manufactured products after a period of time and give them the advantage to reuse and make more profit. On the other hand, nowadays environmental issues become a critical concern for any decision. Therefore manufacturers have to find some ways to be more “Green”; otherwise they may lose those customers concerned about environment, besides governments give more support to the Green manufacturers. But since Reverse Logistics (RL) are more complex compare to forward logistics (Poole, 2003), the information management becomes the key to create an efficient supply chain (Jayaraman, Ross,& Agarwal, 2008). Research by Guide, Harrison andVan Wassenhove (2003) states that ”Managers must take actions to reduce uncertainty in the timing and quantity of returns, balance return rates with demand rates, and make material recovery more predictable. Managers must also plan for the collection of products from end users. Theuse of information systems with new production-planning and control techniques makes management of those activities more predictable.” Most of the papers investigating RL have mentioned this complexity resulting from uncertainties and suggested solutionsfrom the point of IT. But in this paper the characteristics of RFID are considered specifically in order to reduce uncertainties and a model is suggested to show the impact of the advantages of RFID on RLSC

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